Whalesbook
Physicswallah Ltd. shares experienced a 4% decline on Thursday as a crucial three-month shareholder lock-in period concluded. This event unlocks 71.7 million shares, representing 3% of the company's outstanding equity, for potential trading on the open market. The market value of these newly available shares stands at ₹766.83 crore based on Wednesday's closing price.
Market Debut and Subsequent Performance
The edtech company, which provides affordable education services, made a strong debut on the Indian stock exchanges in November. Physicswallah delivered robust listing gains of 36%, opening at ₹145 on the NSE against its issue price of ₹109. Similarly, it listed at a 31% premium on the BSE.
Current Valuation and Price Action
Despite the positive listing, the stock's performance has since moderated. On Wednesday, shares closed down 1.04% at ₹106.95, reaching a 52-week low of ₹106.10. The current trading price remains approximately 34% below its 52-week peak of ₹161.99. However, it still holds a modest 6% gain over its initial public offering price.
The expiry of the lock-in period does not mandate immediate selling but removes the trading restriction. Investors will closely monitor trading volumes and price action in the coming sessions to gauge any potential selling pressure from newly eligible shareholders.